Human resources and labor relations

Assessing the adequacy of book reserves in Europe

Article Abstract:

The governments of Germany, Italy and Spain have programs that grant pension benefits to workers. Companies augment these state benefits to employees by including retirement benefits in their book reserves. German firms provide pension benefits through either direct insurance or office balance sheet provisions. Italy's company retirement benefits take the form of termination indemnities, which are based on employees' yearly income and increase in cost and standard of living. Spain grants retiring employees a lump sum in addition to other pension privileges. Methods used in computing pension costs in the three countries are presented.

Time to rethink company retirement plans in Canada?

Article Abstract:

Company retirement plans in Canada are currently undergoing changes urging employers to reevaluate and redesign their pension plans. Under the existing Canadian retirement benefit scheme encased in the Old Age Security (OAS) system, pensions are provided to all individuals 65 years old and above. An example is the proposed Seniors' Benefit program, which would replace the OAS system by 2001 and offer a tax-free, fully indexed retirement plan to Canadians over the age of 65.